Sprott (SII) versus Its Peers Head to Head Review

Sprott (NYSE:SII) is one of 1,744 public companies in the “Capital Markets” industry, but how does it contrast to its competitors? We will compare Sprott to similar companies based on the strength of its valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Institutional & Insider Ownership

28.3% of Sprott shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 18.3% of Sprott shares are held by company insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Sprott pays an annual dividend of $1.60 per share and has a dividend yield of 1.4%. Sprott pays out 39.2% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.0% of their earnings in the form of a dividend. Sprott has increased its dividend for 1 consecutive years. Sprott lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Sprott and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sprott	$285.08 million	$67.35 million	27.62
Sprott Competitors	$2.39 billion	$398.52 million	17.39

Sprott’s competitors have higher revenue and earnings than Sprott. Sprott is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Sprott has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Sprott’s competitors have a beta of 0.81, indicating that their average stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Sprott and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprott	0	1	2	0	2.67
Sprott Competitors	5550	20114	22442	642	2.37

Sprott currently has a consensus target price of $230.00, indicating a potential upside of 104.07%. As a group, “Capital Markets” companies have a potential upside of 23.35%. Given Sprott’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sprott is more favorable than its competitors.

Profitability

This table compares Sprott and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprott	26.36%	28.40%	20.95%
Sprott Competitors	321.05%	79.19%	3.72%

Summary

Sprott competitors beat Sprott on 8 of the 15 factors compared.

Sprott Company Profile

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.